MCQ Pakistan’s Ongoing Relationship with the IMF Questions with Answers

1. What is the value of the IMF loan approved for Pakistan in September 2024?

A) US$5 billion
B) US$6 billion
C) US$7 billion
D) US$8 billion

2. When did Pakistan join the IMF?

A) 1947
B) 1950
C) 1958
D) 1965

3. How frequently does Pakistan request IMF loans on average?

A) Every 1.5 years
B) Every 2 years
C) Every 2.5 years
D) Every 3 years

4. What is Pakistan’s outstanding balance with the IMF?

A) US$7 billion
B) US$8.8 billion
C) US$9 billion
D) US$10 billion

5. How many IMF loans to Pakistan have been fully disbursed out of the total sanctioned?

A) 7 out of 23
B) 8 out of 23
C) 9 out of 23
D) 10 out of 23

6. What is the approximate value of one SDR as of November 2024?

A) US$1.22
B) US$1.28
C) US$1.32
D) US$1.42

7. When did Pakistan make its first IMF loan request?

A) 1950
B) 1955
C) 1958
D) 1960

8. Which rank does Pakistan hold among IMF’s largest debtors?

A) Second
B) Third
C) Fourth
D) Fifth

9. When did Pakistan secure its first successful IMF loan?

A) 1958
B) 1960
C) 1963
D) 1965

10. What type of countries is the Extended Credit Facility (ECF) designed for?

A) High-income countries
B) Middle-income countries
C) Low-income countries
D) Developed countries

11. How many major currencies determine the value of SDR?

A) Three
B) Four
C) Five
D) Six

12. What is the primary purpose of IMF loans?

A) Project financing
B) Economic stabilization
C) Infrastructure development
D) Military assistance

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13. Which of these is NOT typically an IMF loan condition?

A) Expanding tax base
B) Reducing subsidies
C) Managing inflation
D) Increasing military spending

14. What does SDR stand for?

A) Special Deposit Rights
B) Special Drawing Rights
C) Special Debt Rights
D) Special Development Rights

15. What type of crisis do IMF loans primarily address?

A) Political crisis
B) Balance-of-payments crisis
C) Environmental crisis
D) Social crisis

16. Which of these is a feature of the Extended Fund Facility (EFF)?

A) Strict conditions for macroeconomic reforms
B) No conditions attached
C) Focus on military spending
D) Environmental protection measures

17. When was Pakistan’s latest IMF loan approved?

A) August 2024
B) September 2024
C) October 2024
D) November 2024

18. What role do IMF loans play in a country’s economy?

A) Permanent solution
B) Temporary relief
C) Complete debt elimination
D) Permanent debt restructuring

19. Which of these aspects does the IMF promote?

A) Sustainable growth
B) Military expansion
C) Cultural development
D) Sports infrastructure

20. What has been a recurring issue with Pakistan’s IMF loans?

A) High interest rates
B) Short repayment periods
C) Policy implementation issues
D) Currency fluctuations

21. What type of reforms does the EFF require?

A) Cultural reforms
B) Market liberalization
C) Educational reforms
D) Healthcare reforms

22. What is the nature of IMF’s loan assistance?

A) Project-specific
B) Sector-specific
C) Non-project specific
D) Industry-specific

23. What impact have IMF interventions had on Pakistan’s status?

A) Elevated to developed economy
B) Shifted to lower-income status
C) Maintained middle-income status
D) Achieved high-income status

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24. What is a key requirement for IMF loan disbursement?

A) Military cooperation
B) Compliance with conditions
C) Cultural alignment
D) Diplomatic relations

25. What characterized Pakistan’s relationship with the IMF?

A) Single-time borrowing
B) Repeated borrowing
C) Consistent repayment
D) Complete independence

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